FSC Files CFPB Complaint Against Fintech Company
Free Speech Coalition, the advocacy organization for the adult industry, has filed a formal complaint against fintech provider Novo, after the banking service provider rejected FSC’s business account application, then failed to provide any reasoning to justify their actions. The complaint was submitted to the Consumer Financial Protection Bureau (CFPB), the government agency dedicated to making sure Americans are treated fairly by banks, lenders and other financial institutions.
Last month, as part of its campaign to improve banking access for the adult industry, FSC Executive Director Alison Boden began meeting with banking regulators who encouraged FSC and its members to file complaints whenever accounts are closed or denied. Such complaints not only alert the government to potentially discriminatory practices, but the CFPB can use its authority to contact the institution and advocate on your behalf. Faced with this discriminatory action by Novo, FSC followed the regulators’ advice and is now encouraging all members of the adult industry to do the same.
“As an industry, we need to report incidents of financial discrimination,” says Boden. “One of the largest hurdles we face is that our issue is largely unknown to regulators and legislators. By reporting these incidents to the CFPB, we can start to draw attention to the unfair practices of banks and other financial platforms, and help to stop this endemic discrimination. We are not the problem.”
FSC was in the process of drafting guidance to alert members of the importance of filing complaints when their own account was rejected by Novo. Novo refused to provide any information as to why the application of a 501(c)(6) non-profit with no apparent risk factors had been rejected, and stopped communicating entirely after Boden asked if the decision involved the organization’s relationship to the adult industry.
While more detailed guidance is coming, those who suffer financial discrimination as a result of their work in the adult industry are encouraged to file a complaint with CFPB as soon as it happens. Those who have experienced financial discrimination more generally are encouraged to submit a report to Free Speech Coalition. FSC uses these reports to understand the extent and type of discrimination industry members face, as well as illustrate the harmful impact it has on individuals and businesses.
